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Check out the tale of the tape in the BP flash dash today: http://premarketinfo.com/2012/07/25/bp-flash-dash-analysis/

You are correct, both limit orders and market orders are now toxic, which eliminates scalping, and market making as viable strategies. However, we can still be profitable, I wrote this article for CFA magazine last year, which outlines some necessary trading adjustments. These adjustments...

Great piece from Nanex today, quantifying costs to limit order traders from internalization - stepping ahead of your order. http://www.nanex.net/aqck2/3517.html

Hi londonkid, This is an article I wrote earlier this year. It discusses internalization and retail order flow. I thought you might be interested. http://premarketinfo.com/2012/02/23/dark-secrets-where-does-your-retail-order-go/

Did the sawtooth algo trader in KO pull the old switcheroo today? http://premarketinfo.com/2012/07/20/is-the-coke-algo-running-backwards/

Video discussing the sawtooth patterns (time 7:10) http://premarketinfo.com/2012/07/20/hft-friday-premarket-stock-talk/

Two things: 1) Market making always involves some aspect of risk. But when you can always take the back end of an order, you will have a huge edge in the long run, which will more than make up for any adverse selection on any one specific trade. 2) OTC market makers buy RETAIL order flow...

Man, I wish I could be an OTC market maker and buy order flow. Like shooting ducks in a barrel. http://premarketinfo.com/2012/07/19/otc-market-maker-pockets-8500-off-institutional-error/

I used to own a Quiznos franchise, worst investment I ever made. Sold for a substantial loss a few years later. And I agree, I love the subs, but food quality is definitely not the only determinant of success. I was in a Wendy's for the first time in over a year, and I was very...

I wrote an article discussing these borrowing costs for CFA magazine, here is the link: http://premarketinfo.com/wp-content/uploads/2012/05/cfm.v23.n1.pdf You have to be really careful to check these costs if you're holding stocks short over a longer period of time. I know SHLD was over...

Mid-day is very difficult if you are trading equities (ie. 11am - 2pm ET). During this time it's typically just bots trading with other bots. And the bots are hungry at this time, so if you stick your toe in the water, they will try to game your order. During early morning or late...

July 9th - Support/Resistance numbers for E-mini: http://premarketinfo.com/2012/07/08/july-9th-e-mini-supportresistance-numbers/

Yep....SOES bandits took it away in 90s...now it's coming full circle, as market makers take the game back.

SEC obviously feels that we haven't hit a tipping point, otherwise they would address the real issue. My overall thoughts: The NYSE RLP program will probably not have much of an impact in the way of decreasing marketable retail order flow to the NBBO, as that flow is already diverted (OTC...

Exactly.

My overall thoughts: The NYSE RLP program will probably not have much of an impact in the way of decreasing marketable retail order flow to the NBBO, as that flow is already diverted (OTC market makers internalize almost 100% of it currently). The program is simply a way for the NYSE to get a...

Details on NYSE dark pool, and how it is bad for liquidity. http://premarketinfo.com/2012/07/05/nyse-joins-the-dark-side/

SEC approves NYSE dark pool. Not good for limit orders. http://premarketinfo.com/2012/07/05/nyse-joins-the-dark-side/

Long run....we may still have problems (as I've indicated in the article), but short-run, everyone is way too bearish. Nothing goes down when the overall sentiment is this bearish. Even on CNBC this morning, the commentators were preaching to sell this rally. The herd is short, and I think...

Many traders fading this rally this afternoon, here is why I think they are wrong. http://premarketinfo.com/2012/06/29/why-this-market-will-not-give-up-its-gains/